Exam 1 (Ch 1 - 3)

What are some additional impacts of Moore's Law?

-Access to the Internet is growing rapidly and expected to continue -Data EXPLOSION --> More data is being produced each year than in all the years in human history before 2007 combined -Changing the way we do business - processes, mobility, devices, how we interact with customers and vendors

Relevance of IT in Business

-Forecast: growing demand for IT skills! -Local companies cannot fill all their demand for IT with BG/UT/OSU grads so have to expand into other schools -Insight into ALL business functions & business units including...HR, Marketing, Supply Chain, Accounting, Finance, Legal..... -Employment in the information sector is expected to continue growing exponentially

What is Competitive Strategy? (3)

-How an organization responds to the structure of its industry -According to Porter, a company can engage in one of the four fundamental competitive strategies -To be effective the organization's goals objectives, culture and activities must be consistent with the organization's strategy --Subsequently, MIS processes, info systems and information must support the organization's competitive strategy *Check Ch 1 PP Slide 25 for diagram*

How does MIS relate to Organizational Strategy?

-MIS exists to enable organizations to achieve their strategies -Business strategy determines the value chains which determines business processes which determine information systems -IT is never the goal, only the means: IT does not produce, sell, or procure anything for the business.....processes do

What are some details about Management and use (ie. governance)? (2)

-Management is the creating, monitoring and adapting processes, information systems and information How the data/information will be used impacts its management How does data get into the system? How do we keep it up-to-date? What reports can be run based on this data to help us understand our business? Is it sensitive data/information which needs to be secured? All business functions (accounting, marketing, supply chain, etc) need to understand and take an active role in the management and use of information

Competitive Strategy determines Value Chain Structure

-Once the Competitive Strategy is created, must choose/implement an organizational structure Ex. If the competitive strategy is Cost Leadership then the business activities need to ensure the essential functions at the lowest possible cost

What is the relevance of this class?

-Provide visibility into what MIS/IT is and does...we need students to major and minor in this area to provide companies with the skills they need to operate! -Provides the background you need to assess, evaluate and apply emerging technology to business -Every company is becoming an IT company -Provides ultimate job security - Marketable Skills

What are the 3 key elements to MIS?

1. Processes, information systems and information 2. Management and use 3. Organizational Strategies

What is a process? (1)

A process is a way of doing something. Organizations accomplish work via processes, focusing on them is the key to improving them therefore improving organizations effectiveness and efficiency -Processes evolve over time which necessitate changes to people & technology

What is a value chain?

A value chain is a network of value-creating activities...each activity increases the value of the product. According to Porter there are 5 primary activities and 4 support activities

What is systems thinking?

Ability to model components of the system to connect the inputs and outputs Understanding how things influence one another within a whole, an approach to problem solving, by viewing "problems" as parts of an overall system, rather than reacting to specific part

Skills needed for today's market are considered "non-routine". MIS courses cause you to develop these skills. **Foreshadowing: We will be leveraging both of these as we learn BPM (Business Process Management) and CI (Continuous Improvement)

Abstract Reasoning Systems Thinking Collaboration Ability to Experiment

What is an information system? (1)

An information system is a collection of components, including a computer, that stores and retrieves data and produces information

RFID - Change & Adapt

Automated inventory operations, improved tracking of goods, more efficient supply chains

What are some business benefits and risks of emerging technologies and social software?

Benefits: gaining competitive edge, gaining efficiency Risks: Putting customer information at risk, losing money (ex may not generate enough additional revenue to cover the cost of bringing on a social media resource/team) -Future business professionals need to be able to assess, evaluate and apply emerging technology to business -Businesses need people to creatively take advantage of these to create business value and discourage or block those which are harmful

Augmented Reality - Change & Adapt

Better visibility of inventory and product detail, customers can see images of themselves with your products, safer vehicle operations

Will Moore's Law end?

Bob Cowell believes it will end in 2020 or 2022 in 5 or 7 nano-meters; can only get so small before law of physics gets in the way

What is the ability to experiment?

Conducting analysis of an opportunity, envisioning potential solutions , developing those which have the most promise and applying the results (Why did it work? Why didn't it work? What did we learn from this? How can we make it better next time?)

What happens when MIS is not aligned with Organizational Strategy?

Ex. DHL made the strategic decision to enter the US domestic pick-up and delivery market but failed to develop sufficient IT infrastructure to compete with UPS and FedEx -To successfully execute this strategic move, DHL needed strong customer service IT to match UPS and FedEx; however, their systems could not provide customers with accurate tracking data -After 6 years and $10 billion in losses it left the market

EADS, the European aircraft manufacturer of Airbus, is making a new airplane wing. While they have made airplane wings for 40 years, they are trying a new approach—they are printing them. Using this new technology called 3D printing EADS is making airplane wings that are lighter, cheaper and stronger. In this "additive manufacturing" process the printer lays down successive layers of material that quickly hardens. Just as two-dimensional printers deposit ink in two dimensions, 3D printers deposit material in three dimensions, layering material in the third dimension as it dries.

Impact: -Entrepreneurs will no longer need to amass the capital for an initial manufacturing process to create the first batch of a product -Supply chains can be made more efficient and less wasteful as some supplies are printed and not delivered -Concept-to-production times can be significantly reduced -Difficult to make items like gloves, clothing, and bone replacement structures can be made more customized to individual consumers.

What is information? (1)

Information is some form of knowledge that helps employees do their jobs

3D Printing - Change & Adapt

Low initial costs, more efficient supply chains, concept to production times reduced, custom made gloves, cloths, medical tools

What are Organizational Strategies? (3)

MIS exists to help organizations achieve their strategies. Technology and processes need to be driven by business need, not by the technology itself -"we must use twitter because our competition is" -Should be asking "what business value does it provide? Do we have a gap that this technology can fill?" -Technology decisions should be driven by business need

What is MIS?

Management Information Systems -Combining process and technology with the goal of helping organizations achieve their strategies

What is Moore's Law?

Moore's Law - The number of transistors per square inch on an integrated chip doubles every 18 months *Because of Moore's Law, the ratio of price to performance of computers has fallen from around $4000 to 1 cent from 1983 to 2012 *Cost of data communications and data storage is essentially $0. Consequences of this: -YouTube -iPhone -Facebook -Pandora

Relevance of IT in Business

One of the highest paid internships and post graduate jobs in the business school - CBA $53,820

What is value?

Porter defined value as the amount of money that a customer is willing to pay for a resource, product or service

What are primary activities in the value chain?

Primary Activities in the Value Chain - The parts, time and activity of creating a product -Inbound Logistics, Ops/Mfg, Outbound Logistics, Sales/Marketing, Customer Service

Mobile Payment

Reduced cost of cashiers, ease of use for customers, opportunity to sell items outside of traditional retail or e-commerce venues

Cloud Computing

Reduced costs, scalability, universal delivery of documents and data

What are support activities in the value chain?

Support Activities in the Value Chain - activities that contribute indirectly to all of the primary activities -Procurement, Technology, Human Resources, Infrastructure

What is abstract reasoning?

The ability to make and manipulate models which serve to solve problems, understand complex systems and apply knowledge

What is margin?

The difference between the value that an activity generates and the cost of the activity is called the margin

Social Media

Two way communication with customers, crowdsourcing, easily updated knowledge structure arrangements

What are value chain linkages?

Value Chain Linkages - interactions across value chain activities Ex. A pizzeria implements a new order entry system to improve order accuracy....in addition, realize improvement in raw material inventory -Allows for reporting so management can better plan/forecast which results in buying what is needed during the time it is needed

What is collaboration?

Working together to achieve a goal. Key is to give/receive feedback